Adoption of hybrid methodologies increased from 20% in 2020 to 31.5% in 2023, according to the Project Management Institute’s The Future of Project Work: Pulse of the Profession 2024.
Why? Today, in the age of digital transformation, enterprise agility, and hybrid portfolios, organizations are grappling with an increasingly complex landscape. It’s no longer reasonable to apply one single approach when your portfolios contain multitudes. You must remain agile and flexible to meet multiple priorities and company objectives.
While we’re seeing agile methodologies grow in popularity, the more traditional waterfall project management methodology hasn’t fallen by the wayside just yet—even though agile yields a 64% success rate, compared to waterfall’s 49% success rate, according to research.
In fact, it’s not necessarily a case of agile vs. waterfall. A hybrid approach in your PMO could be the answer.
With the PMO under increasing pressure to produce and meet goals efficiently and effectively, leaders and portfolio managers must embrace hybrid delivery environments by offering a strategic and practical approach to managing multiple methodologies at scale. The hybrid model transforms how the PMO delivers real change.
Discover how PMOs can support both Agile and Waterfall methodologies across the portfolio. Learn how hybrid PMOs maintain visibility, control, and alignment.
Agile: A Brief Overview
Introduced in the 1990s, the agile approach sought to introduce flexibility into the software development lifecycle, ensuring teams could incorporate feedback early and often, and adapt to changing requirements quickly and effectively. In 2001, the Agile Alliance established 12 principles governing the philosophy.
Today, agile is applied to projects of all types, not just software development, from marketing campaigns to research and development. Large corporations such as Apple, Procter & Gamble, and Netflix use agile. Unlike traditional approaches, it is a non-linear methodology that breaks down projects into smaller components.
With agile, you keep iterating and adjusting based on stakeholder feedback. The project is the responsibility of every team member, as is quality assurance. That means it requires close collaboration and communication.
Agile centers around the concept of continuous improvement. Teams don’t wait to address problems. Instead, changes are incremental, and you’ll see benefits throughout the cycle. It’s an adaptable model.
PMI underscores the many benefits of agile, including its flexibility and adaptability to changes, its high degree of stakeholder involvement and satisfaction, and the continuous delivery of quality products.
But PMI also notes several drawbacks, such as the necessity for deep experience from team members, the possibility of scope creep, and the unpredictability of the approach.
Agile is best suited to projects that require innovation and constant feedback. For example, companies introducing new products often rely on the methodology so they can get stakeholder insights quickly, without going too far in the wrong direction. However, it can be difficult for companies with rigorous vetting processes or strict guidelines, as well as those without strong collaborative environments.
Waterfall: A Brief Overview
Originally applied to manufacturing and construction, Waterfall is a more traditional approach to project management, introduced in 1970. Many industries had relied on similar approaches previously. The straightforward methodology depends on teams outlining every aspect of the project in a linear, logical, and sequential manner.
Despite the movement toward agile, some businesses still rely on waterfall, particularly those with strictly defined requirements that demand careful planning. Today, companies like NASA and Boeing follow the waterfall methodology for its predictability and need for extensive documentation. Organizations in sectors like healthcare, manufacturing, supply chain management, and construction also frequently use the methodology.
Waterfall follows a series of steps, where each phase must be completed before the next one begins. You cannot backtrack to previous stages without starting over completely, and there is very little customer interaction until the final steps of the project. At every stage, there is detailed documentation.
Waterfall follows five stages:
1. Requirements gathering.
2. Design.
3. Implementation or development.
4. Verification or testing.
5. Deployment.
6. Maintenance.
While waterfall works well with projects with carefully defined requirements and strict deadlines, it’s less beneficial for projects that need a fast turnaround, stakeholder feedback, and flexibility. For example, it’s well-suited to construction projects, which require sequential stages; you must complete the foundation before the first floor. PMI also notes disadvantages such as inflexibility, late problem detection, and unsuitability for highly complex projects.
What Is a Hybrid PMO?
Image source: TPG
DBS Bank incorporated both agile and waterfall approaches, using the more rigid methodology to redesign its infrastructure, while relying on a more iterative methodology to overhaul client digital services, when undergoing a digital transformation.
“Recognizing and adapting to the uniqueness of the organizations and their projects is paramount,” according to PMI.
That’s why some projects and companies, such as Google and, of course, DBS Bank, don’t rely on one specific methodology. Instead, they use a combination of multiple, such as agile and waterfall, applying the strengths of each.
For example, one company might develop software and produce hardware, using agile for software components and waterfall for hardware. Or, a software development team uses agile for the front-end and waterfall of the back-end. You could even utilize a hybrid approach for the same project, applying waterfall to structure the project but using agile for various phases.
So, what is a hybrid PMO, and why is it becoming more common?
A hybrid PMO is equipped for managing agile and waterfall together. But it goes beyond simply accommodating both methods. Through the hybrid approach, PMOs:
- Customize models to the specific context and project needs.
- Enable governance in various conditions and at different speeds.
- Ensure flexibility.
- Deliver greater value.
- Cultivate cultures of collaboration and continuous feedback.
- Optimize resource management.
The hybrid PMO doesn’t just track processes; it facilitates greater value. That means, for example, tracking both agile and traditional metrics. Reporting evaluates dimensions ranging from resource utilization to agility.
Hybrid approaches often use a range of tools, or a single platform that accommodates multiple approaches, such as Prism PPM. Roles are clearly defined, and there is a greater focus on delivering real-time feedback.
Challenges of Managing Agile and Waterfall Together
What are the main challenges when managing agile and waterfall together? Some of the obstacles you may encounter include:
- The PMO is too rigid for Agile teams and too loose for traditional ones.
- Executives want one view, but the delivery models don’t line up.
- It’s difficult to scale governance without slowing teams down.
- You need consistency without killing flexibility.
- There is resistance to change.
- There is a lack of visibility.
- You’re grappling with resource constraints.
- There is confusion when multiple approaches are involved.
- There is misalignment on projects and goals.
Fortunately, a PPM approach governed by a hybrid PMO can help address these challenges.
The Rise of Wagile and Hybrid Delivery
One prominent hybrid PPM methodology is Wagile. As you can probably surmise from the name, this approach blends waterfall and agile, taking advantage of waterfall’s predictability and agile’s flexibility.
In a nutshell, Wagile structures projects in phases that include iterative sprints. It offers several advantages, such as improved stakeholder engagement and alignment, stronger collaboration and communication, reduced scope creep, risk reduction thanks to early error detection, and speedier project delivery.
Wagile is best-suited for scenarios where both structure and flexibility are paramount, such as digital transformation and compliance-heavy programs.
For example, a telecommunications company leveraged this hybrid approach when rolling out a 5G network. Because the project was complex and encompassed numerous stages, the company needed to combine the two methodologies, using waterfall for infrastructure planning with agile for software deployment in network optimization. This helped balance speedier deployment while still ensuring stakeholder alignment.
As with any methodology, Wagile does come with some drawbacks in PPM. For example, teams accustomed to waterfall or agile may have difficulty adapting to the combination of the two approaches. It can be tricky to go back and forth between the two.
Moreover, goals for agile iterations may not be aligned with waterfall goals, which can result in confusion. Ownership can be unclear, too, and if you don’t prioritize communication, collaboration among team members and with stakeholders can suffer as well. Fortunately, establishing proper governance protocols can go a long way in mitigating these challenges and ensuring you leverage Wagile effectively.
Why Adopt a Hybrid Approach?
A hybrid approach is the best route for diverse organizations across industries. Whether your focus is collaboration or your project includes several different components and teams with various styles of working, it’s an ideal project management approach.
Hybrid is also beneficial if your organization is easing into an agile approach and blending the two to facilitate a smoother transition. It offers greater flexibility when no single project management approach works for all your initiatives.
Or, perhaps risk management is a priority. Resources are being stretched too thin (or are under-utilized), and you need a better way to manage your resources effectively. Perhaps you’re seeking a more flexible leadership style.
Finally, hybrid is a strong methodology if you need to achieve better alignment with your overall business strategy, and scalability is necessary now or will become necessary in the future.
Agile vs. Waterfall vs. Hybrid: Key Differences
| Agile | Waterfall | Hybrid | |
| Pros | • Incorporates feedback early on • Leads to fewer errors because of incremental phases | • Requirements and objectives are clear • There are no surprises | • Customizable • Flexible • Allows you to switch between approaches |
| Cons | • Unpredictable • Requires self-sufficient teams • Carries the risk of scope creep | • Inflexible • Customer feedback is limited during the project • Value isn’t realized until the end of the project | • Requires a deep understanding of both agile and waterfall • Can be confusing for team members |
| Ideal for | • Projects requiring continuous feedback • Projects that demand flexibility • Teams that can self-manage | • Scenarios where all requirements and other details are fixed • Projects that can be extensively planned • Scenarios where changes are unlikely to occur | • Scenarios where one approach doesn’t fit perfectly • Complex projects with many different parts • Situations with many different stakeholder needs |
| Example use cases | • Product development | • Building construction | • Digital transformation |
How to Run or Support a Hybrid PMO
How can you facilitate waterfall-agile project portfolio management and support a hybrid PMO? Follow these general guidelines, adapting them to fit the needs of your particular project and business.
Start by evaluating the overall goals.
Take stock of your business goals and the current state of project management at your organization. What’s working? Where are there gaps? Examine the various delivery models to determine the best fit or combination for your needs.
Ensure leadership alignment.
Leadership must be fully on board with employing a hybrid methodology, while at the same time affording teams the flexibility to use a blended approach. While leadership may have a strong preference for one approach over the other, you will need to illuminate the benefits of the hybrid methodology to ensure alignment.
Make necessary governance adjustments.
Transitioning to a hybrid PPM requires flexibility. However, it still demands a governance framework. You must create a framework that has clear protocols for choosing and prioritizing projects and accommodates multiple methodologies. There should be rules in place to ensure everyone understands how governance works within the PMO and larger organization. We’ll go into more detail about hybrid PPM governance below.
Train your team members.
Educate your teams on the various project management methodologies and philosophies you will be implementing. Everyone involved needs to understand each approach.
Evaluate individual project needs.
Assess the complexity, objectives, and requirements. Determine which methodology or methodologies work best on a case-by-case basis. Establish clear roles and responsibilities. Use tools to automate and streamline your processes, and choose a platform that accommodates multiple methodologies, such as Prism PPM.
Ensure unified reporting.
While hybrid approaches offer many benefits, there is a risk of data fragmentation and inconsistency. You must ensure unified reporting to prevent data silos from occurring. A PPM platform like Prism PPM can help you integrate various tools and ensure consistency in reporting.
Use tools to automate and streamline your processes.
Choose a platform that accommodates multiple methodologies, such as Prism PPM.
Monitor objectives and progress and track KPIs.
Solicit feedback from all stakeholders and team members, and adjust the parameters as needed. Remember: The hybrid PMO is about flexibility. You should seek out, rather than fear, improvements.
How PMOs Enable Multi-Methodology Environments
Aligning Metrics
We’ve underscored the challenge of aligned metrics with blended waterfall-agile approaches. Since these methodologies typically use different metrics, it can be difficult to reconcile the two for a consolidated view of your performance.
Remember that a hybrid PPM leverages the strengths of each approach. Therefore, it should also leverage the most salient features of agile and waterfall, including metrics. That means the overall portfolio could have associated metrics like ROI, while individual projects may use the metrics consistent with the approach you’re using for each of them. A PPM software solution allows you to manage the various KPIs and metrics you’re tracking.
Managing Dependencies
Managing dependencies in a hybrid PPM requires clear communication and transparency. A PPM tool is the best way to effectively facilitate visibility of the relationships between projects and tasks. Using the platform, you can fully document expectations and requirements, as well as risks and other factors. You can also monitor dependencies across projects, departments, and programs.
Maintaining Executive Visibility
Again, communication and transparency are essential for maintaining executive visibility in a hybrid PMO. Utilize dashboards on your PPM platform to centralize and illuminate key data. This will keep stakeholders informed and up to date. By viewing your dashboards, stakeholders can view KPIs, metrics, progress, and other important data.
PMO Governance for Hybrid Delivery: Best Practices
What does effective governance look like in a hybrid model? How can PMOs offer support and oversight without enforcing uniformity? Follow these principles.
Centralize people in your approach.
People are your most important resources. They should be well-equipped with the necessary skills and tools to utilize each philosophy successfully. Take an agile approach, listen to their feedback and adapt accordingly.
Govern the process.
As one study notes, “It is the project manager’s knowledge and responsibility to adapt combined methods, depending on the project type and its special characteristics.” The PMO and the project or portfolio manager is responsible for executing the project.
Tailor your approach.
There is no one-size-fits-all approach in a hybrid PMO. You will need to adapt your methods and utilize agile principles.
Don’t be afraid to use technology.
PPM platforms, like Prism PPM, will help you manage hybrid methodologies. Be flexible in your tool selection, combining tools as needed. Using a blend of PPM tools for hybrid PMOs ensures that you stay adaptable.
Focus on value.
Hybrid PMOs are not rigid in process. Instead, they’re about delivering value. That also involves ensuring continuous improvement, where you’re always refining.
Establish KPIs.
Use metrics to measure and improve project performance. We’ll look at the importance of KPIs and metrics more closely below.
Metrics and KPIs
What metrics and KPIs still matter regardless of methodology? Project portfolio management for hybrid environments still demands these metrics to ensure that you’re delivering value and improving processes. Use a range of metrics and KPIs to track and evaluate project performance and success. They allow you to assess and refine your processes. A PPM tool like Prism PPM enables you to track KPIs.
Examples of KPIs to track include:
- Project Success Rate
- Resource Allocation
- Project Effort and Churn
- Projects Aligned with Objectives.
- Budget Variance
- Customer Satisfaction Rate
- Return on Investment
Conclusion
Be flexible. Be curious. Be nimble.
These principles will allow you to ensure a more successful hybrid project management approach and build a PMO that suits your organization.
Prism PPM facilitates multiple methodologies and hybrid approaches, making your processes smoother and more efficient. Book a 30-minute consult or a 60-minute demo today.